Microsoft’s gaming revenue rises 43% year-over-year due to Activision acquisition

Microsoft has waived its financial effects for the first quarter of its fiscal 2025, which looks like a strong expansion in its gaming sections following the acquisition of Activision, even though Xbox hardware revenue is not available.

the numbers

For the 3 months ended September 30, 2024:

• Earnings: $65.6 billion (up 16% year-over-year)
• Source of Internet Income: $24.7 billion (up 11% year-over-year)

• Additional income from private computing (including Xbox): $13.2 billion (up 17% year-over-year)

The highlights

It’s been a good quarter for Microsoft as a whole, driven by its cloud and artificial intelligence products and services, and particularly interesting in its gaming categories. The company doesn’t provide actual numbers within its Extra Private Computing division, which includes Xbox, but it does estimate that its total gaming revenue was up 43% year over year.

It noted the “net impact of the Activision acquisition” on revenue from its content arm and Xbox products and services, up 61% year-over-year. Xbox hardware, on the other hand, was down 29% compared to the same extreme year.

On the other hand, Amy Hood noted that Microsoft’s gaming sector results have been above its expectations for the quarter due to strong performance in “both first-party and third-party content, as well as consoles.”

On the earnings call, CEO Satya Nadella shared that Game Go set a “new first-quarter record for total revenue and average revenue per subscriber,” and Call of Accountability Dim Ops 6’s successful start will likely continue to push those numbers higher. late. Microsoft cited poor data for Game Pass subscriptions (the name exempted closer to the end of the first quarter and is not included in those results).

He also commented: “One year after we closed our acquisition of Activision Snowfall King, we are curious to develop an industry positioned for long-term expansion, driven by higher-margin content and products. Let’s see this variation in our effects as we We diversify the ways players access our content.

“We set new records for monthly active users in the quarter, as more players than ever play our games across devices and the Xbox platform.”

Looking ahead, Microsoft expects its gaming revenue to see a “high single-digit” decline for the second quarter, “due to hardware,” and for Xbox content and product revenue to be “relatively flat.”